The U.S. and Taiwan are holding the first formal negotiations toward a trade agreement between the two countries that has drawn the ire of the Chinese government.
Mercatus Center Sr. Fellow Weifeng Zhong discusses China's retaliatory threats for COVID travel restrictions, the threat to Taiwan, and plans to reopen the U.S. embassy on the Solomon Islands.
As the U.S. and Taiwan reach agreements in some of these areas, the two sides may announce standalone deals on those subjects for what Taiwanese officials called an "early harvest" as momentum builds toward a broader trade agreement. Two areas that have proven more challenging between the U.S. and Taiwan – agriculture and digital trade – are likely to take longer to negotiate.
"China is always against any country negotiating economic and trade agreements of sovereign implication or official nature with China’s Taiwan region," the spokesman said. In a statement announcing the new round of negotiations, the U.S. Trade Representative's Office noted that the negotiations with Taiwan are being conducted according to longstanding policies including the Taiwan Relations Act, which governs America's unofficial diplomatic relationship with Taiwan, and the one China policy that recognizes the dispute between the PRC and Taiwan.
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